A leading private equity firm investing in Europe

A leading private equity firm investing in Europe

A leading private equity firm investing in Europe

A leading private equity firm investing in Europe

The UK’s largest indoor go-karting operator

A leading private equity firm investing in Europe

Pioneering UK value retailer

We invest in Western European mid-market companies

Duke Street Private Equity has been investing in mature, mid-market Western European businesses for over twenty years, concentrating our investment strategy on four sectors: Consumer, Healthcare, Industrials & Engineering and Services. Typically we invest in companies with an enterprise value of between £50m - £250m. Our strategy is based on our ability to identify unique opportunities and add value to each business we acquire. We aim to transform the prospects of the companies that we invest in.

Origination beyond the obvious

We focus our efforts on transactions developed on an exclusive basis. We actively seek complex deals which other investors may avoid if we think they have underlying growth potential.

Value creation

Our mission is to accelerate the growth of the companies that we buy. We help our companies grow both organically and through acquisition.

Supportive Structure

We have developed a robust approach to building relationships between ourselves, the CEOs of our portfolio businesses and our Operating Partners.

Sector focus

We believe sector knowledge is critical, which is why we have dedicated teams focusing on our four core sectors. This, alongside the deep industry experience of our Operating Partners, has allowed us to create a proven track record of successfully building companies.

"At Duke Street we have always adopted a flexible and innovative approach whether raising money or investing and then transforming our companies"

PETER TAYLORMANAGING PARTNER

We invest in companies with strong brands serving consumers across multiple channels

We have extensive experience in the consumer sector: in restaurants with wagamama, in the gaming sector through our investment in companies such as Gala Bingo, Sporting Index and Leisure Link. In leisure, we have invested successfully in both niche hotel operators and fitness and leisure businesses. Two of our investments in particular – SandpiperCI and The Original Factory Shop – display our willingness to back retail management teams with ambitious growth plans, even at a time when the sector as a whole was experiencing tough trading.

We also have a wealth of experience of working with management teams in consumer branded products. At Simple, we backed an ambitious growth plan for the business to become the UK’s leading skin care provider by volume, overtaking companies such as Nivea and L’Oreal in the process.

See our Portfolio for a more in-depth analysis of these and further Consumer investments.

"By funding each investment on a bespoke basis from our club of investors, it ensures the maximum alignment of all parties"

James AlmondPartner

Duke Street is a long-term investor in the healthcare space, making our first investment in 1997

Since then we have deployed c. €700m in the sector, backing great management teams to deliver transformational business plans.

We believe the sector to be structurally attractive: it is defensive and benefits from significant barriers to entry due to the complexity of the products and services involved.

We also believe that it lends itself well to our investment strategy. Europe is home to a large number of strong management teams, and high value-added businesses which deliver outstanding patient outcomes. Such businesses typically offer multiple routes to value creation. Even the most mature sub-sectors remain fragmented and so there is significant potential for buy and build.

Please see our Portfolio for a more in-depth analysis of our past and present Healthcare investments.

"We actively seek out businesses in need of operational change. We are passionate about improving the companies we invest in"

Stuart McMinniesMANAGING PARTNER

We cover a broad range of Industrials sub-sectors with a particular focus on aerospace & defence, engineering, manufacturing & security

We look to invest in companies with differentiated product or process IP, operating in attractive end-markets, with scope to affect operational transformation through inter alia, a build-up in specific niches, technological changes, or product / geographic diversification.

We back management teams with a clear strategic vision as well as a strong operational focus; and our in-depth understanding of the sector means we are well-placed to work in partnership with such teams.

Our investments in this sector include Deloro Stellite, the specialist engineering group, and filtration solutions provider Madison Filter. See our Portfolio for a more in-depth analysis of these and further investments.

We invest in services businesses with the potential for operational improvement and rapid growth

The services sector encompasses a wide range of sub-sectors, each subject to its own dynamics but often with outsourcing as a key driver. We identify macro trends that will drive above average market growth, and then back businesses providing value added skills and products to their customers in those markets. We are particularly attracted where there is the potential for operational improvement as well as organic growth. We partner with best-in-class management teams providing support, capital and expertise where this is required and materially adds value.

We have considerable experience in the sector, complemented by a large network of industry contacts. Investments we have made in this sector include Ardent Hire Solutions, a heavy equipment hire business, Payzone, a consumer payments business, and the specialist pensions group Xafinity. See our Portfolio for a more in-depth analysis of these and further Services investments.

Investors

The Duke Street investor base comprises traditional funds and pools of committed capital alongside co-investment mandates from high quality investors, which include Fund of Funds, Pension Funds, Insurance Companies and Family Offices amongst others. Our investors are long-term supporters of the private equity model and are located across the globe with substantial support from North America and Europe.

Duke Street has invested over €2.5bn in more than 50 companies over the last 25 years and has achieved strong returns in excess of 20% IRR throughout the cycle. Duke Street adopted a deal-by-deal funding strategy in 2012, subsequently raising committed capital to invest alongside its co-investment mandates. Duke Street itself invests substantially in each deal ensuring maximum alignment between Duke Street, its investors and management teams.

Latest News

James Almond in Financial News Rising Stars of Private Equity 2018

Duke Street partner James Almond has been featured by Financial News in the magazine’s annual review of the 25 men and women under the age of 40 who stand out in the European private equity industry.

Duke Street partner James Almond has been featured by Financial News in the magazine’s annual review of the 25 men and women under the age of 40 who stand out in the European private equity industry.

James joined Duke Street in 2015 and is responsible for fundraising, running the co-investment programme and investor relations.

Beyond his role at Duke Street, James is active in voluntary work both relating to private equity and in creating greater value for charities and social enterprise. He is a Guest Lecturer in Private Equity at the London Business School and a Senior Advisor to the Charities Aid Foundation.

The Fleet Operator Recognition Scheme encompasses all aspects of safety, fuel efficiency, economical operations and vehicle emissions and contributes to improving sustainability and corporate social responsibility practices in the sector.

Commenting on the importance of FORS to Ardent, the group’s Safety, Health Environment and Quality (SHEQ) Director, Garry Orr, said:

“Ardent embarked on its FORS journey in 2011, after seeing the growing need to improve Health and Safety within the construction industry. We became Bronze certified in May 2011 and quickly realised that the certification was worthwhile in helping us improve our H&S targets. We noticed the value delivered from having rigorous and robust transport management, quality and compliance, policy and procedures.

“We are committed to providing a safe working environment for all our employees and the FORS toolkits have helped us achieve this. We believe that one of the most important factors is upskilling our drivers by giving up to date, relevant training. As a result we have improved driver retention. Today our drivers are much more aware of the emphasis our business places on their safety.

“Over the last 12 months we have implemented a rigorous programme of vehicle replacement with Euro VI engines to reduce emissions. In addition, our transport units are fitted with reverse cameras, monitors in the cab, side scanners and white noise indicators as standard. All of these features help us improve H&S and increase public safety. Together with Driver Toolbox Talks (TBTs) we have seen significant reductions in incidents and Penalty Charge Notices (PCNs).

“We have been promoting FORS to all our hauliers and have introduced Silver standard as a minimum requirement for them being a part of our supply chain.

“We believe the FORS Gold standard clearly shows to all our peers and clients our stance regarding road safety not only in the workplace but also by promoting further training for our drivers to recognise them from being an HGV driver to an HGV professional.”

Key appointments at Duke Street

Tom Salmon joins as a Partner having spent 13 years at 3i, the international private equity and infrastructure investor.

At 3i, Tom was a Partner with responsibility for the group’s activity in the Consumer sector in the UK. He led 3i’s investment in Audley Travel, where he was also a non-executive Director, and represented the group on the Board of Hobbs, the women’s fashion group. In addition, Tom has considerable investment experience in the Services sector, having played a key role in deals including JMJ and NCP. Previously, Tom spent a year on secondment in Madrid with responsibility for a number of 3i’s investments in Spain.

Tom is a qualified Chartered Accountant and has a first class honours degree in Modern History from Oxford University.

Hugo Strachan joins as an Investment Manager, responsible for executing transactions and supporting deal origination in the Business Services and Healthcare sectors. Hugo previously worked at RJD Partners, a UK private equity fund, where he worked on management buyouts across a range of sectors including Business Services, Leisure and Education. Prior to RJD, Hugo worked in the Strategy team at PwC, providing due diligence to private equity, venture capital and corporate clients.

Hugo is a qualified Chartered Accountant and has a degree in Finance from Newcastle University.

“These are important appointments for Duke Street, strengthening our expertise in three key sectors for our group. Our pipeline of potential investments is very strong and we look forward to working with Tom and Hugo to progress the best of those deals.”

The Times: Expansion on the menu at wagamama

Casual dining may be in the doldrums yet while the likes of Jamie’s Italian, Byron and Prezzo undergo painful restructurings and closures, wagamama is bucking the trend.

Casual dining may be in the doldrums yet while the likes of Jamie’s Italian, Byron and Prezzo undergo painful restructurings and closures, wagamama is bucking the trend.

While most of its rivals are losing sales, the noodle bar chain yesterday reported an 8.2 per cent jump in its UK like-for-like sales in the third quarter, an acceleration on the 7.1 per cent growth seen in the second quarter.

Its total turnover rose by 12.5 per cent to £72.1 million in the three months to January 28, lifting revenues for the first 40 weeks of its financial year to £229.5 million, up 13.5 per cent. Underlying earnings for the year to date are up 0.9 per cent to £35.1 million amid supply chain and wage cost increases and it made a loss after interest, tax and refinancing costs of £6.6 million.

The group, backed by Duke Street and Hutton Collins, has opened six UK restaurants and two in America this year while adding eight new overseas franchises, including three in Madrid. It has 185 restaurants, of which 129 are in the UK.

Jane Holbrook, chief executive, said the group had “continued to trade ahead of the competition consistently for more than three years” amid continuing investment in staff and innovation such as its new vegan menu.

River cruise line A-Rosa reports 6% growth - Travel Weekly

German river cruise line A-Rosa reported a 6% increase in revenue to £77.1 million for 2017. The operator revealed on Tuesday that all global markets were performing well and reported an increase in both operating profit and revenue for the fourth year running.

German river cruise line A-Rosa reported a 6% increase in revenue to £77.1 million for 2017. The operator revealed on Tuesday that all global markets were performing well and reported an increase in both operating profit and revenue for the fourth year running.

Lucia Rowe, head of A-Rosa UK, said the line’s revenue for the year so far was up 20% up compared to the same time last year. A-Rosa’s 2017 figures were released as the Federal Cartel Office in Germany approved its acquisition by British investors Duke Street. Duke Street agreed the acquisition from Waterland Private Equity in January.

Rowe said: “2017 was a great year for A-Rosa globally with many contributing factors, including our new route on the Seine which has proved a popular choice and the increasing demand from customers to see more whilst away.

“Sales for 2018 have started well and we are already 20% up on where we were this time last year.

“We remain totally committed to working only with our trade partners and agents and it is going to be an exciting year.”

More than 85,000 passengers were carried on board A-Rosa river cruises in 2017.

wagamama wins restaurant brand of the year for the second year running

Now in their third year, the Casual Dining Restaurant & Pub Awards are one of the highlights of the hospitality sector’s calendar. For the second time in as many years, wagamama has scooped the award for large multi-site restaurant brand of the year, which is judged on commercial success and overall excellence including innovation, staffing, design, marketing, menus and customer satisfaction.

Now in their third year, the Casual Dining Restaurant & Pub Awards are one of the highlights of the hospitality sector’s calendar. For the second time in as many years, wagamama has scooped the award for large multi-site restaurant brand of the year, which is judged on commercial success and overall excellence including innovation, staffing, design, marketing, menus and customer satisfaction.

wagamama continues to report strong performance including 196 consecutive weeks of market outperformance as determined by the industry’s Peach tracker and regularly tops the BrandVue monthly index for customer satisfaction.

In the last year wagamama also launched a vegan menu featuring 29 plant based dishes, opened an innovation test kitchen in Soho called ‘noodle lab’ and has pledged to remove all plastic straws and replace them with bio-degradable paper straws by Earth Day on 22nd April 2018.

Voyage Care named as finalists for 2018 HealthInvestor awards

Duke Street investment Voyage Care is delighted to have been named as a finalist in not one, but two categories for the 2018 HealthInvestor awards.

Duke Street investment Voyage Care is delighted to have been named as a finalist in not one, but two categories for the 2018 HealthInvestor awards.

Reaching the finals in the Specialist Provider and Community Based Support categories is recognition of the huge strides Voyage has taken in recent years to enhance its specialist provision and transform the way it delivers community based care and support services.

The prestigious HealthInvestor awards recognise excellence in the delivery of social care. Voyage was the winner in the Specialist Provider category in 2016 and a finalist in 2017.

Duke Street secures 5x return on Baywater Healthcare exit

Duke Street, the midmarket private equity group, has sold its controlling investment in Baywater Healthcare UK to Bastide Group, a specialist in the sale and rental of home medical equipment in France. The undisclosed consideration makes a total cash return of more than 5x cost for Duke Street and its co-investor, Souter Investments with the potential for further returns from an earnout based on future performance. The firm sold Baywater’s Irish operations to Air Liquide in August 2015.

Duke Street, the midmarket private equity group, has sold its controlling investment in Baywater Healthcare UK to Bastide Group, a specialist in the sale and rental of home medical equipment in France. The undisclosed consideration makes a total cash return of more than 5x cost for Duke Street and its co-investor, Souter Investments with the potential for further returns from an earnout based on future performance. The firm sold Baywater’s Irish operations to Air Liquide in August 2015.

Baywater delivers oxygen-therapy, sleep apnoea therapy and non-invasive ventilation therapy services to patients in the home. It is the only independent company serving the UK market, alongside three major gas group subsidiaries. The business was acquired by Duke Street in November 2013 as part of Air Products’ Homecare operations in the UK and Ireland. The transaction was Duke Street’s second deal-by-deal financing.

The business currently employs 230 people and provides support to 26,000 patients. The sale to Bastide Group has been approved by the National Health Service.

"Baywater has been a classic Duke Street investment in healthcare, a core sector for the firm. With the dual trends of an ageing population and an increasing need for the NHS to manage costs by providing patients with care at home, we have worked successfully with management to raise the quality of care, improve logistics, invest in stronger operational and logistics capabilities, thereby delivering significant growth in profitability. We wish Bastide Group every success with Baywater’s next phase of growth.”

Adam Sullivan CEO of Baywater commented:

“The four years we have spent with Duke Street and Souter have been exciting and rewarding – they have been demanding while constructive and supportive. I and my team are proud of the business we have built together - the strength of which has been recognised by Bastide.”

Duke Street acquires A-ROSA

Market leader for premium river cruises in Europe is firm’s second current investment in Germany.
Duke Street, the mid-market private equity group, has agreed to acquire A-ROSA, the German upmarket river cruise operator, from Waterland Private Equity. The consideration has not been disclosed.

Market leader for premium river cruises in Europe is firm’s second current investment in Germany.

Duke Street, the mid-market private equity group, has agreed to acquire A-ROSA, the German upmarket river cruise operator, from Waterland Private Equity. The consideration has not been disclosed.

A-ROSA is a market leader in the premium segment for river cruises on Europe’s Danube, Rhine/Main/Moselle, Rhône/Saône and Seine rivers. The company was established in 2001 as a subsidiary of P&O Princess Cruises and was originally developed as the river cruise complement to AIDA ocean cruises. Based in the northern German city of Rostock and in Chur, Switzerland, A-ROSA has approximately 600 employees and operates a fleet of 11 high quality vessels. More than 85,000 passengers travelled on board A-ROSA cruises in 2017.

The company has, to date, enjoyed a very strong following in its German home market, as well as growing positions in other consumer markets, including the UK. Benefitting from a growing base of affluent older consumers, the river cruise segment performed strongly in the last economic downturn. The A-ROSA brand is highly regarded, with a modern, innovative river cruise fleet and exclusive agreements with key travel agencies. The high quality of on-board food and drink, cabin design and entertainment has encouraged significant levels of repeat bookings. The river cruise market is expected to benefit further from product development, loyalty-based marketing and a reduction in the average age of cruise holidaymakers.

“We have identified in A-ROSA an exciting opportunity to back the leader in a growing segment of the European leisure market. The management team, led by CEO Jörg Eichler and COO Markus Zoepke, has built a strong consumer proposition for seasoned cruise passengers and new cruisers alike. Waterland has helped the team since 2009 to develop an excellent platform for further growth and we are delighted to be part of the next phase of A-ROSA’s success.”

Jörg Eichler, CEO of A-ROSA, added:

“Duke Street moved very quickly in building a solid understanding of our business in a short space of time and have shown real determination to deliver a transaction that allows us to unlock the growth potential to take A-ROSA to the next level. We look forward to working together with the Duke Street team to develop and grow our business over the next years.”

Given the very strong ongoing consumer demand for the company’s offering, the opportunity exists for Duke Street both to expand A-ROSA’s fleet size and launch its product onto new rivers, while increasing its exposure to source markets outside Germany. Growing awareness of the convenience of visiting iconic European cities from a relaxed floating base is expected to sustain growth in the river cruise market and A-ROSA’s penetration of further key consumer economies on the continent.

The transaction is subject to approval by antitrust authorities.

The A-ROSA buyout increases Duke Street’s current portfolio in Germany to two investments made within two years. In March 2016 the group led a consortium to acquire Medi-Globe Corporation (Medi-Globe), a medical devices business focused on minimally invasive surgery in gastroenterology and urology.

Green light for two new TeamSport tracks

TeamSport, the UK’s leading indoor karting operator, acquired by Duke Street in October 2017, has been granted planning approval for two new tracks in the north of England.

TeamSport, the UK’s leading indoor karting operator, acquired by Duke Street in October 2017, has been granted planning approval for two new tracks in the north of England.

The first will be a state of the art venue on the Walton Summit Industrial Estate in Bamber Bridge, Preston. A £1.2m projected build investment will deliver two multilevel circuits across three floors for up to 20 karters to race at any one time. Preston is expected to open in early summer.

The second, in Beckside Business Park close to Bradford’s city centre, will be TeamSport’s 26th centre in the UK. Again investing more than £1m in the development, the company promises a 580m multilevel circuit for up to 18 karters. Projected opening is also in early summer.

Dominic Gaynor, TeamSport Managing Director, said:

“We’re delighted to have received permission to open and are looking forward to welcoming residents and visitors to the new tracks.

“Our fantastic choice of race events and excellent value karting offers will ensure karting is accessible to everyone looking for an adrenaline fuelled, fun day out.”

Sales growth served up at wagamama noodle chain, The Times, Dominic Walsh

The casual dining sector may be suffering indigestion, but wagamama continues to deliver tasty results. In the six months to November, it reported an increase in UK like-for-like sales of 6.9 per cent after investment in “people, product and property”.

The casual dining sector may be suffering indigestion, but wagamama continues to deliver tasty results. In the six months to November, it reported an increase in UK like-for-like sales of 6.9 per cent after investment in “people, product and property”.

While most of its rivals struggled, wagamama’s like-for-like growth accelerated from 6.8 per cent in the first quarter to 7.1 per cent in the second. Underlying earnings before exceptionals grew by 2.2 per cent in the first half to £23.5 million, from turnover up 14 per cent to £157.4 million.

Duke Street quartet in Health Investor Power Fifty 2017

Duke Street is pleased to announce the recognition of four key individuals, including two category winners, in one of the healthcare industry’s most respected annual reviews.
Each year Health Investor magazine’s Power Fifty seeks to honour those who have the most influence in the UK’s independent health and social care market.

Duke Street is pleased to announce the recognition of four key individuals, including two category winners, in one of the healthcare industry’s most respected annual reviews.

Each year Health Investor magazine’s Power Fifty seeks to honour those who have the most influence in the UK’s independent health and social care market. The newly published 2017 list of movers and shakers includes:

Leading investors: Charlie Troup – Duke Street managing partner

Charlie joined Duke Street in 2006 and leads the firm’s investments in healthcare. His recent deals in the sector include Voyage Care, Baywater Healthcare and Medi-Globe Corporation.

Non-Executive Director: Douglas Quinn (voted first in NED category)

Most recently chairman of Baywater Healthcare and a former CEO of Duke Street portfolio company Voyage Care, Douglas has worked in health and social care for more than 30 years. He remains an operating partner of Duke Street and a NED of Voyage, as well as chairman of the NFA Group, the UK’s leading provider of specialist services for children.

Outstanding leaders: Andrew Cannon – CEO of Voyage Care

Andrew was appointed CEO of Voyage Care in August 2015. Voyage is the UK’s leading provider of residential care services for adults with learning disabilities. Supporting over 3,000 people, more than 95% of Voyage’s services are rated ‘Good’ or ‘Outstanding’ by the Care Quality Commission.

One to watch: Jayne Davey – COO of Voyage Care (first in category)

Described by another Power Fifty member as “the best operator in the sector bar none”, Jayne became Voyage Care’s chief operating officer in March 2015, with responsibility for operations, IT and projects. Jayne joined Voyage in 2013 as Director of Quality and Improvement.

wagamama scoops two major industry awards

Pan-Asian restaurant group wagamama, a Duke Street investment since 2011, is celebrating a double whammy at the 2017 Peach Hero & Icon Awards, the annual event of leading restaurant industry research house CGA.

Pan-Asian restaurant group wagamama, a Duke Street investment since 2011, is celebrating a double whammy at the 2017 Peach Hero & Icon Awards, the annual event of leading restaurant industry research house CGA.

Against a tough field of respected operators in the UK restaurant market, wagamama scooped Most Admired Brand or Company, based on a vote by the sector’s leading operators. The group also picked up the Best Company award.

Senior representatives from across the multi-billion pound casual dining sector celebrated the achievements of almost 50 different brands and companies nominated in 14 categories. Big name competitors included Nando’s, Pret a Manger, Leon, Dishoom, Yo! Sushi and Wahaca.

Duke Street acquires TeamSport

First deal for firm’s new Cornerstone Fund, supported by Goldman Sachs.
Duke Street, the mid-market private equity group, has acquired a controlling interest in TeamSport Karting, the UK’s largest indoor go-karting operator. The investment is the first for Duke Street’s new Cornerstone Fund, established in January this year with backing from Goldman Sachs Asset Management and Arcano as a key step in the evolution of Duke Street’s deal-by-deal approach into a hybrid funding model. Unigestion acted as the sole institutional co-investor in the deal.

First deal for firm’s new Cornerstone Fund, supported by Goldman Sachs.

Duke Street, the mid-market private equity group, has acquired a controlling interest in TeamSport Karting, the UK’s largest indoor go-karting operator. The investment is the first for Duke Street’s new Cornerstone Fund, established in January this year with backing from Goldman Sachs Asset Management and Arcano as a key step in the evolution of Duke Street’s deal-by-deal approach into a hybrid funding model. Unigestion acted as the sole institutional co-investor in the deal.

TeamSport was established in 1992 and completed a management buyout from its founder in 2013, backed by investor Connection Capital. With just eight tracks in 2013, TeamSport, led by managing director Dominic Gaynor, now operates 23 tracks across the UK, including five in London, and expects to accelerate this rate of growth under Duke Street’s ownership. The price has not been disclosed.

The UK go-karting sector is highly fragmented, comprising more than 200 mainly independent, single-site operators. TeamSport’s next largest competitor has four sites. The company has achieved impressive growth in recent years through a combination of like-for-like sales improvement, new site openings and enhanced performance from acquired tracks.

TeamSport’s business combines enthusiasm with professionalism, providing exciting karting experiences at high quality facilities with excellent customer service. It offers indoor tracks of up to 1km in length, which include multi-level karting, banked corners, flyovers and ramps as well as hairpin bends, chicanes and fast straights. On-site restaurants and bars are also available at its venues.

“TeamSport presents an exciting opportunity to support the clear leader in a growing niche segment of the UK leisure market. The strong management team has built a compelling proposition for all levels of racegoers and an excellent platform for further development. We are delighted to be backing Dominic and his team for the next phase of growth.”

Duke Street Partner Jason Lawford added:

“The company’s focus on a superior customer experience, delivered by its committed and loyal team, is recognised in industry-leading customer service scores. We are confident that TeamSport’s high quality offering is capable of being taken to the next level to extend TeamSport’s leading market position and accelerate its growth.”

Dominic Gaynor said:

“Duke Street stood out from the pack with their understanding of our business and their determination to deliver - in my view this makes them an ideal partner for the next stage of TeamSport's journey.”

wagamama owner wins race for takeover of go-karting group

Voyage Care CEO shortlisted for Health Investor Power Fifty

Andrew Cannon, Voyage Care’s Chief Executive Officer, has been selected for the Health Investor Power Fifty. This is the third consecutive year that Andrew has been recognised by Health Investor as one of the sector’s most influential leaders.

Andrew Cannon, Voyage Care’s Chief Executive Officer, has been selected for the Health Investor Power Fifty. This is the third consecutive year that Andrew has been recognised by Health Investor as one of the sector’s most influential leaders.

This year he has been shortlisted in the Outstanding Leader category which recognises ‘resilient, visionary and pragmatic’ leaders. Andrew said: ‘I feel honoured to have been shortlisted again and proud to lead an organisation that day in, day out makes such a profound impact to the lives of some of the most vulnerable people in society.’

Voyage Care announced as finalists for the 2017 LaingBuisson awards

Voyage Care has been shortlisted as a finalist in two categories of this year’s LaingBuisson Awards.

Voyage Care has been shortlisted as a finalist in two categories of this year’s LaingBuisson Awards.

Following Voyage Care’s success as winner of the Residential Care category in 2016, this year the company is a finalist for Supported Living and Children’s Services (through its specialist healthcare arm, VSH). The winners will be announced on 15 November 2017 at Park Plaza on Westminster Bridge, London.

The LaingBuisson Awards are described as ‘the Oscars of health and social care’. These prestigious awards are in their twelfth year of recognising excellence, they are judged independently and focus on the people providing care and support, along with their advisors.

Ardent achieves gold

Ardent Hire Solutions is pleased to announce that it has earned the designation of ‘Gold Members’ from the Supply Chain Sustainability School (SCSS).
The School, founded by Skanska with support from Kier, Lend Lease, Morgan Sindall, Sir Robert McAlpine, Willmott Dixon and Aggregate Industries represents a common approach to addressing sustainability within supply chains.

Ardent Hire Solutions is pleased to announce that it has earned the designation of ‘Gold Members’ from the Supply Chain Sustainability School (SCSS).

The School, founded by Skanska with support from Kier, Lend Lease, Morgan Sindall, Sir Robert McAlpine, Willmott Dixon and Aggregate Industries represents a common approach to addressing sustainability within supply chains.

To reach this high position, Ardent successfully completed an assessment followed by regular re-assessments. They actively reviewed the school resources and showed improvement through implementing new processes, demonstrated an increase in sustainability experience and actively shared their knowledge and experience with other members.

Ardent Hire, one of the UK’s largest plant hire companies has set out a sustainable plan to become the UK’s premier plant solutions provider.

‘With a target to double the size of its market share in the UK, initiatives such as working with the SCSS continuously improves our knowledge in the markets we serve and allows us to better understand our customers’ sustainable targets’, says Garry Orr, SHEQ Director at Ardent Hire.

‘We are excited to work closely with the school and learn more about ways in which we can position ourselves as leaders in the fight for a sustainable future’.

The SCSS is a virtual learning environment that aims to help businesses develop sustainability knowledge and competence. It was designed to help further address the challenges faced by the construction industry and to help companies benefit from the many new opportunities that are emerging through sustainable business.

Voyage Care acquires Focused Healthcare Limited

Voyage Care is delighted to announce the acquisition of Focused Healthcare Limited (FHL).
FHL provides care services to children and young people with complex, acute and chronic illnesses. Based in London, FHL was set up in 2009 by paediatric nurse Nicki Nicholls. Nicki will continue to manage day to day operations at FHL as Managing Director.

Voyage Care is delighted to announce the acquisition of Focused Healthcare Limited (FHL).

FHL provides care services to children and young people with complex, acute and chronic illnesses. Based in London, FHL was set up in 2009 by paediatric nurse Nicki Nicholls. Nicki will continue to manage day to day operations at FHL as Managing Director.

FHL and Voyage Care share many values and a common purpose to make a difference through delivering great quality care and support. The two companies provide complementary specialist care and support services, with FHL focusing on providing specialist care to children and Voyage Care predominantly supporting adults. FHL’s commitment to deliver outstanding complex healthcare to families will continue to be supported by Voyage Care.

Commenting on the acquisition, Andrew Cannon CEO said:

“We are delighted to welcome Nicki and her excellent business to the broader Voyage Care family. We look forward to working with Nicki to further expand the business and offer our services to ever more Commissioners and families across London and surrounding areas.

Jayne Davey, COO said:

“FHL is an exciting opportunity for Voyage Care to expand the services it provides whilst at the same time complementing our high acuity specialist care in autism, acquired brain injury and related conditions. I very much look forward to working with Nicki and her team in the next phase of FHL’s growth.

Nicki Nicholls, Managing Director FHL said:

“FHL and Voyage Care’s shared values and commitment to delivering great quality care and support is a great basis for our future working together. I am looking forward to being part of the Voyage Group; their investment and support will enable FHL to deliver outstanding complex healthcare to even more families.”

wagamama Limited, a wholly-owned subsidiary of Mabel Mezzco Limited (the “Company”), announced today that wagamama Finance PLC, another wholly-owned subsidiary of the Company, has launched an offering of senior secured notes due 2022 in an aggregate principal amount of £225 million (the “Notes”).

wagamama Limited, a wholly-owned subsidiary of Mabel Mezzco Limited (the “Company”), announced today that wagamama Finance PLC, another wholly-owned subsidiary of the Company, has launched an offering of senior secured notes due 2022 in an aggregate principal amount of £225 million (the “Notes”).

The Notes will be guaranteed on a senior secured basis by the Company and certain of the Company’s subsidiaries. Interest will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions. The gross proceeds of the offering will be used (i) to redeem all of wagamama Finance PLC’s £150 million of outstanding senior secured notes, (ii) pay the accrued interest and the redemption premium for the outstanding senior secured notes, and (iii) repay certain amounts of deferred interest on loan notes.

The Company entered into an amendment and restatement agreement dated June 23, 2017 to its existing Revolving Credit Facility to extend the maturity to six months prior to the maturity of the Notes. The amendment and restatement agreement will become effective subject to certain conditions precedent, including the issuance of the Notes.

tofs appoints Emma Fox as CEO

tofs, the UK’s national off-price department store, today announces that Emma Fox has been appointed as Chief Executive Officer, with effect from August 30th.

tofs, the UK’s national off-price department store, today announces that Emma Fox has been appointed as Chief Executive Officer, with effect from August 30th.

Most recently, Emma was Commercial Director at Halfords Group plc, a role that she held for three and a half years from August 2013. Emma was instrumental in helping drive Halfords’ turnaround, delivering strong profitable sales growth across all channels through a highly customer focused strategy. Prior to Halfords, Emma was Chief Marketing Officer at Walmart Canada from 2011 to 2013, where she drove a successful customer focused agenda for the business, increasing market share in a competitive market place. Emma took the role in Canada having been with Asda in the UK from 1999 to 2011 in a variety of senior commercial roles.

Emma is also a Non-Executive Director at Punch Taverns, and has previous Board experience from Catalyst, WEConnect International, IGD and the Asda Foundation.

Emma Fox, incoming Chief Executive Officer, commented:

“I am very excited to be taking the role of Chief Executive at this point in the tofs journey. It is a great company that clearly plays a key role in the communities of many towns in the UK. I believe that there is significant potential for this unique business and I look forward to working with the team to help realise this.”

Alistair McGeorge, Chairman of tofs said:

“The Board is delighted to welcome Emma as the new Chief Executive of tofs. There is no doubt that she is well suited to the role with her extensive retail and commercial experience from a range of retail groups and has many exciting ideas to take tofs forward. We look forward to working with her to help deliver growth from the solid foundations that have been established.”

Baywater’s Adam Sullivan shortlisted for CEO of the Year award

Adam Sullivan of Baywater Healthcare has been shortlisted for this year’s UK Private Business Awards in the CEO of the Year category.

Adam Sullivan of Baywater Healthcare has been shortlisted for this year’s UK Private Business Awards in the CEO of the Year category.

Baywater Healthcare provides home based therapies on behalf of the NHS for patients with long term respiratory conditions. Adam led a management buyout of the healthcare division of Air Products plc in 2013 supported by London based private equity firm Duke Street. Since the buyout the business has seen a significant growth in turnover thanks to diversification in new services for patients with Sleep disorders and developing innovative remote managed solutions for monitoring patients in their homes, which significantly reduces unplanned hospital admissions.

Following his nomination Adam commented:

“I’m immensely proud to be representing my team in the finals. We have some incredible business leaders in the UK, many of whom have been a source of inspiration to me. This process showcases those who strive to create companies that offer their customers a truly engaging experience.”

As the shortlist citation says:

“Charismatically leading from the front, Adam inspires, engages and celebrates the success in his colleagues regardless of an employee’s position. Everyone adds value in Adam’s view. High levels of discipline, strong ethics and values are qualities which he embodies and expects of his team.”

Now in their seventh year, the awards sponsored by professional services network PwC are positioned to recognise success and achievement within the vast number of private businesses in the UK. Presented to the UK’s most successful private companies, entrepreneurs and management teams, the Awards are often referred to as “The Diamonds”. The awards will be announced at an event in London in Mid-September.

Ardent appoints Sales Director

Ardent Hire Solutions announces the appointment of Leigh Webb as the company’s new Sales Director.

Ardent Hire Solutions announces the appointment of Leigh Webb as the company’s new Sales Director.

Leigh will take charge of Ardent sales to both new and existing customers. He brings with him vast experience of the UK hire market, joining from Ainscough Crane Hire, where he built a highly successful sales team and was instrumental in driving revenue and margin improvements. Leigh previously held the role of Sales Director at Torrent Trackside, part of the VP Group, and was Regional Manager at Finning, the world’s largest Caterpillar dealer.

“Ardent is the most exciting organization in the hire industry right now, with a great team and an impressive fleet that just keeps getting better all the time,” explained Leigh. “Ardent has big plans for the future, and I am excited to be part of those plans.”

£4m deal adds Ammann Rollers to the Ardent fleet

Ardent Hire Solutions is delighted to announce the latest phase in its £100m investment, with the signing of a £4m deal with A&Y Equipment Ltd. This major new purchase will add over 100 brand new Ammann rollers to the Ardent fleet, boasting the very latest technology in both performance and operator safety.

Ardent Hire Solutions is delighted to announce the latest phase in its £100m investment, with the signing of a £4m deal with A&Y Equipment Ltd. This major new purchase will add over 100 brand new Ammann rollers to the Ardent fleet, boasting the very latest technology in both performance and operator safety.

“We chose Ammann because they offer market leading products driven by innovative design,” says Ardent Commercial Director, Tom Gleeson. “Thanks to their state of the art articulating and oscillating central joint, we are able to provide our customers with a greater safety specification and a solution to machine stability and control.”

The order includes a wide range of compactors from remote-controlled trench rollers to single drum, self-propelled machines. All the machines in the order were selected because they fit with Ardent’s key customer provisions of safety, reliability, performance and fuel economy.

As Tom Gleeson explains: “Ammann’s product offering is perfectly aligned to the features that our customers demand, which made this partnership such a great fit for Ardent.”

The new rollers will be rolling out across Ardent’s 14 depots nationwide over the coming months, updating and complementing the company’s extensive fleet of top of the range roller/compactors.

Against a tough field of respected operators in the UK restaurant market, wagamama scooped Multiple Casual Dining Restaurant of the Year, while CEO David Campbell was named Trailblazer of the Year.

More than 400 industry professionals – including senior representatives from Casual Dining Group, Living Ventures, Las Iguanas, Nando’s, Bill’s Restaurants, Marston’s, The New World Trading Co, Revolution Bars Group, Mitchells & Butlers, PizzaExpress, Carluccio's, Prezzo, MEATliquor, Giggling Squid, Cabana, and The Breakfast Club – were in attendance to recognise and celebrate the standout brands of the year across the multi-billion pound casual dining sector.

Duke Street teams up with Goldman Sachs and Arcano to restructure Fund VI

Duke Street, the mid-market private equity firm, has restructured its sixth fund following a review run by Lazard. Goldman Sachs and Spain’s Arcano have come in to finance the restructure.

Duke Street, the mid-market private equity firm, has restructured its sixth fund following a review run by Lazard. Goldman Sachs and Spain’s Arcano have come in to finance the restructure.

The proposal was supported by 89 per cent of Fund VI investors, with 50 per cent of LPs liquidating their commitments. The remaining LP commitments in Fund VI will be transferred to a new vehicle containing a portfolio of the fund’s six remaining assets, including Wagamama and The Original Factory Shop. Duke Street said the long term realised track record of Fund VI since 2008 has been 2.3x with a 29 per cent IRR.

Duke Street wanted to offer liquidity to LPs in the 2006 vehicle, stating that some of these investors had been considering the age of their own underlying funds while others no longer deemed private equity to be a core part of their investment strategy following the 2008 global financial crisis.

Duke Street adopted a deal-by-deal funding model in 2012, drawing on a “club” of approximately 20 LPs to co-invest in five transactions with a combined enterprise value of more than £700m. Two realisations so far from this model have delivered a combined return of more than 3x.

The Fund VI restructuring progresses this deal-by-deal approach to a hybrid funding model. This will comprise formal capital from a Cornerstone Fund, backed by Goldman and Arcano, which will commit up to 50 per cent of equity investment in new deals. This traditional blind pool will be supplemented by Duke Street’s club of co-investors, several of which have already supported more than one deal, plus the firm’s own general partner contribution.

James Almond, Duke Street partner and head of fundraising at the firm (pictured), said the deal would strengthen Duke Street’s hybrid funding model, offering additional firepower, certainty of funding and flexibility.

Duke Street restructures Fund VI

Duke Street has restructured its sixth fund, with half of LPs cashing out via the process. As part of the unquote" In Profile series, Denise Ko Genovese takes a look at the GP's new hybrid strategy.

Duke Street has restructured its sixth fund, with half of LPs cashing out via the process. As part of the unquote" In Profile series, Denise Ko Genovese takes a look at the GP's new hybrid strategy.

50% of existing investors rolled over into newly created SPV

GP has made five deal-by-deal investments since moving away from fund-based investing

Typical investments range from £50-250m EV

Mid-market private equity house Duke Street has restructured its 2006 fund, Duke Street VI, in a deal that sees Goldman Sachs and Arcano taking the position of almost half the original LPs. A total of 50% of investors decided to cash out, with the remainder rolling over into a newly created special purpose vehicle (SPV) where the six remaining assets from Fund VI, including Wagamama and The Original Factory Shop, were transferred.

"We started to think about options for Duke Street VI last year as it was approaching the 10-year point since first close," says investor relations partner James Almond. "We wanted to offer our LPs choice, knowing some would appreciate liquidity given the age of their own underlying funds or the fact private equity was no longer a core strategy of theirs. So we decided to restructure the fund and we received overwhelming support with 89% approval from the 50-strong LP group."

Lazard was hired to run a process before the summer of 2016 and by September there were a handful of potential buyers willing to provide cash. Goldman Sachs offered the highest price as well as tabling new money to fund future deals as a cornerstone investor – up to 50% of the GP's equity ticket, says Almond. Spanish investment group Arcano also took part in the process and agreed to work alongside the lead bidder at the syndication phase.

"For those rolling over, we wanted to keep the terms the same, so no different to [what they would have been] if we had extended the life of the fund," says Almond. "And for those cashing out, we wanted to maximise the price – it was at a price that was a premium to the NAV of the fund."

Duke Street says it is adopting a hybrid model for the next phase of its investment journey, moving away from its deal-by-deal approach, since they now also have cornerstone funds at their disposal. For a new deal, the GP contribution will be 3-5%, the cornerstone fund contributing 50%, with additional co-investment. French investment bank Tikehau acquired a 30% chunk of the Duke Street business in 2013, so the underwriting capability is still on the table in the unlikely event it is required, says Almond.

Challenge or opportunity

A few years ago, the GP moved away from fund-based investing to a deal-by-deal approach. "It wasn’t all smooth sailing, especially since the model wasn’t as common here in Europe as it is in the US, but we have proved ourselves now with five deals under our belt, which have a combined EV of £700m," says Almond.

"The market has been evolving and some LPs who said they couldn’t invest with a fundless sponsor only 18 months ago are willing and wanting to co-invest now. We have a club of circa 20 LPs who co-invest in our deals, several of them have been repeat investors. Our most recent deals have been heavily oversubscribed. Now GS and Arcano have given us further support with the new cornerstone fund, we have plenty of fire power."

Indeed, the co-investment market in general is more established now, and most GPs admit there is increasing appetite for it. Not only is there money to deploy since returns have been so good, LPs are getting savvier about reducing fees. When asked whether Duke Street will ever fundraise again, Almond concedes it would never say never. However, it is keen to give the hybrid model a chance to succeed, especially given the apparent advantages of flexibility and deal-by-deal carried interest.

"The 10-year fund model isn’t going anywhere – but I think we’ll start seeing some different and more flexible models on the periphery," says Almond. Duke Street typically calls on three to five co-investors for each deal and the LPs range from family offices such as Souter Investments to blue chip institutions like Deutsche Bank, Alberta Teachers and Allstate Insurance.

Same but different

The GP's focus on four sectors – services, healthcare, consumer and industrials – remains unchanged. It continues to look at companies with an EV of £50-250m, though this can on occasion be higher: Voyage Care was a chunky £375m. Duke Street will typically contribute a £60-70m equity ticket.

"We don't often go into auctions as the companies we like to invest in can sometimes need quite a bit of operational or strategic change and may not appeal to everyone or suit a process," Almond says, citing the acquisitions of Ardent and Mediglobe where there were messy shareholder structures to buy out. With this in mind, the hope is for an investment rate of up to three deals a year.

And in terms of tapping the debt markets for financing, Duke Street is fairly open to the range of options. It used mezzanine for Laurel Funerals; ABL for Ardent; bonds for Voyage and Wagamama; and a group of local German banks for Mediglobal.

Deal-by-deal track record

Since adopting the deal-by-deal approach four years ago, Duke Street has acquired five companies and exited two.

Laurel Funerals was acquired in 2012 and sold to Dignity and August Equitybacked FSP in 2015; Baywater Healthcare was acquired in 2013 as a carve-out from a larger corporate, with the group's Irish division then sold to Air Liquide in 2015. The GP also acquired Voyage Care in 2014, created Ardent out of the acquisitions of Fork Rent and One Call in 2015, and most recently bought German medical equipment maker MediGlobe in 2016.

Longer-term returns are understood to be more than 2x with an IRR approaching 30% since the 2008 crisis, with a further pick-up in performance since adopting the deal-by-deal approach with returns of over 3x.

Key People

• Peter Taylor, managing partner, joined Duke Street in 1996 after qualifying as a chartered accountant and working at Bridgepoint. He is a specialist in the consumer sector.

• Charlie Troup, managing partner, joined Duke Street in 2006 after working at Permira and HSBC Private Equity (now Montagu) on secondment from Deloitte and Touche.

• Stuart McMinnies, managing partner, joined Duke Street in 2015 after a 19-year stint at 3i. His main sector expertise is in business services.

• James Almond, partner, joined Duke Street in 2015 from Octopus Investments and is responsible for fundraising, running the co-investment programme and investor relations.

Contact

Duke Street

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